Armed Forces Pay

Alex Chalk Excerpts

Wednesday 1st November 2017 Commons Chamber

[Alex Chalk (Cheltenham) (Con)]

I am grateful for the opportunity to say a few words in this debate. I must admit that I was a little surprised when I read that this was the topic that had been chosen by the Opposition, given that the Leader of the Opposition, when faced with the option on Armed Forces Day to honour the British armed forces, chose instead to go and stand in a field in Glastonbury to talk about dismantling Britain’s independent nuclear deterrent.

It is important to place all this in context. The allegation being made is that the UK Government are not supporting the armed forces. Well, let us take a look at that. The British Government have the second largest budget in NATO and the largest in the EU. We are meeting the 2% target, which, by the way, Germany, Italy and Spain are not. Furthermore, spending is forecast to increase. Seven ships and submarines have started to be built. There is a kit projection of £178 billion between 2016 and 2026. What does that translate into? It translates into jobs in my constituency. For example, the excellent CDS Defence Support will be supporting that investment.

Something that has not been mentioned thus far is the fact that £1.9 billion will be invested in intelligence spending, so that GCHQ in my constituency will be able to expand and to keep us safe. It is concerning that that £1.9 billion seems to have been forgotten. To put it in context, that is about half of the total amount that we spend on prisons. That is something that the UK Government are supporting. Let me add this: spending supports not just the valiant and skilful men and women of our armed forces and intelligence services, but the local economy. A cyber-innovation centre has been set up in Cheltenham and is doing great work. The finest minds are going in and out of places such as GCHQ to nurture small businesses.

Of course the issue of pay is important, but, as my hon. Friend the Member for Aldershot (Leo Docherty) has said, it is part of a basket of issues. It is not for me to advise the Loyal Opposition on what to talk about, but it might have been more judicious to broaden the scope and the basket of issues. Some issues, such as accommodation, are clearly very important. To focus the whole debate purely on pay is, I say respectfully, ill advised.

[Bob Stewart]

In 28 years, I cannot recall a soldier complaining about pay. However, they often complained about allowances, particularly when changing from one theatre to another on operations and losing their local overseas allowance. That is correct. They do complain about that, and it is something that we should look at, because service personnel, particularly those in the junior ranks, find it very difficult.

[Alex Chalk]

That is exactly the kind of sophistication that should be brought to this debate. We should be looking at specific issues, that can improve the lives of serving soldiers, sailors and airmen and women.

The principles that we should apply are tolerably simple. First, we should listen to independent experts—the pay review bodies—and, secondly, we should build in flexibility where there is a skills shortage. I will return to that briefly in a moment. It is right, as my right hon. Friend the Prime Minister indicated in Prime Minister’s questions today, to look at the context of the public finances. She said that we are spending £50 billion a year on debt interest alone. That raises a really important moral argument. When we talk about the future of our armed forces, we do not just want armed forces for today, tomorrow or next week; we want our children to be able to enjoy the protection of the armed forces as well.

What is Labour’s suggested solution to this? Notwithstanding the fact that we have public borrowing of about £58 billion each year and a national debt of £1.7 trillion, its remedy is more borrowing, more debt and more tax. Where does that leave us as a country? If we were to borrow an additional £500 billion, as has been suggested, our national debt would go from £1.7 trillion to £2.2 trillion. What happens to that £50 billion that we are spending each year? It goes to about £65 billion. Basically, before we pay for a single soldier, a single police officer, or a single nurse, we will be spending £62 billion a year when the entire defence budget is £36 billion. There will be people born today in our country who in 30 years’ time, through no fault of their own, will either knock on the door of the welfare state because, as an entirely deserving case, they need assistance, or they will want the protection of our armed forces, but the cupboard risks being bare if the Opposition are able to achieve what they want to achieve.

[Mr Kevan Jones]

I thought that the Tory party’s script had changed; obviously the hon. Gentleman does not have the new one. Will he explain, therefore—

[Alex Chalk]

rose—

[Mr Kevan Jones]

He needs to sit down.

[Alex Chalk]

I was chomping at the bit.

[Mr Kevan Jones]

The Government were able to find £1 billion out of fresh air to pass over in their agreement with the Democratic Unionist party in Northern Ireland so that they could stay in power, so why can they not fund the pay of our armed forces?

[Alex Chalk]

With respect, that argument has been made with tedious regularity. It betrays a complete lack of understanding of the public finances. This country borrows £58 billion every single year. The nation spends £803 billion a year. Yet, Labour wants to borrow £500 billion, which in turn would increase our annual payment by something in the order of £12 billion. That would be monstrous and disastrous for the UK economy and future generations. There is an issue of generational justice, and that is a message that Labour has not learned.

[Nia Griffith]

Will the hon. Gentleman tell us whether he thinks it is better to get this country’s deficit down by asking the wealthy and the big corporations to pay a little bit more, or does he want it to come off the backs of our hard-working armed forces?

[Alex Chalk]

With respect, that is complete financial illiteracy. The top 1% in this country are paying 28% of total spending. That is a higher figure than ever. The hon. Lady fails to mention that people started to pay tax at earnings of a little more than £6,000 under the last Labour Government. We do not require the lowest paid to pay tax after £6,000 now; the threshold is up at £11,500. That means more money in the pockets of low-paid people. We have increased the national living wage, which also puts more money in the pockets of ordinary people. It is the complete inability to engage with the figures that, with respect, undermines Labour’s position.

It is important, of course, that we do everything that we possibly can to support our brave men and women. It is also important that we increase flexibility where there are shortages, which is why it is important to observe that there may be extenuating circumstances—for example, in GCHQ, where there is sometimes difficulty getting and retaining the brightest and the best. We want brilliant armed forces today, tomorrow and in the years to come, and that is why I will not support the Labour motion.